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Can you summarize NJST 12A:5-109?
Fraud and forgery.
Short Summary
This legal document, found in the New Jersey General and Permanent Statutes under the section of Commercial Transactions, pertains to fraud and forgery in relation to presentations made in compliance with the terms and conditions of a letter of credit. If a required document is forged or materially fraudulent, or if honoring the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant, the issuer shall honor the presentation if demanded by certain parties who have given value in good faith and without notice of forgery or material fraud. However, the issuer may choose to honor or dishonor the presentation in other cases. Additionally, if an applicant claims forgery or material fraud, a court of competent jurisdiction may grant relief against the issuer or other persons after meeting certain conditions. This document does not specify any specific penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Issuers, applicants, nominated persons, confirmer, holders in due course, assignees
What does it govern?
Fraud and Forgery
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New Jersey